Median forecasts in the March 31-April 4 poll of 90 foreign exchange strategists showed the dollar ceding ground to all major currencies in a year.
Highlighting the outsized role interest rates play in currency movements, most analysts, 32 of 56, who answered a separate question said rate differentials will drive the dollar the most over the coming month.Fed funds futures showed markets were pricing in a rate cut to come as early as September despiteWith the dollar's expected retreat, the euro briefly crossed below parity with the dollar on lagging rate expectations in 2022.
Up 2.5% this year, the European single currency was forecast to trade around current levels of $1.09 in the next one to three months and then strengthen another 2% to change hands around $1.12 in 12 months.